Social Security changes for married and divorced people in 2025, how will it affect you?

Social Security will bring about some changes in the New Year, and these could affect retirees who receive spousal or divorce benefits.

It’s best to be informed about updates involving benefits and how these could affect you in the coming year.

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Social Security changes for married and divorced people in 2025, how will it affect you?

Cost-of-living adjustment for 2025

The cost-of-living adjustment for the coming year will be 2.5%, the lowest amount in four years. If you collect spousal or divorce benefits, this percentage may not seem significant, given that these benefits are usually smaller.

As of last month, the spouse of a retired worker received an average of $909 per month from Social Security. With the increase, the monthly amount will go up by a little less than $23.

READ ALSO: Senate to vote on Social Security Fairness Act

Retirement earnings test

If you have opted to receive Social Security benefits while you are still under full retirement age and are still working, you may need to take the retirement earnings test.

This test sets an income limit for those earning a salary, and the amount will depend on whether or not you will reach full retirement age next year. If you do, your benefits will be reduced by $1 for every $3 over the limit of $62,160 per year. If you don’t reach this age next year, the amount will be reduced by $1 for every $2 over the limit of $23,400 per year.

Since spousal or divorce benefits are generally less than those received by the average retiree, they tend to be more affected by the earning test limits in terms of absolute numbers. Your Social Security benefit could be mostly or totally withheld if your salary goes well beyond the earning test limit.

READ ALSO: Working while receiving Social Security could land you with a smaller benefit check

Medicare premiums

If you are receiving spousal or divorce benefits, you may feel a bigger bite coming out of your Social Security check. Medicare Part B premiums will rise next year, which could result in a larger deduction in terms of percentage for those who receive smaller checks.

Medicare premiums are usually deducted from Social Security benefits, and next year, Part B payments will increase by $10.30 to amount to $185 per month in 2025.

Considering that the average spousal benefit for the coming year will only rise by $23 per month due to the COLA, this increase will in effect be only around $12.70 if you deduct the $10.30 increase in Medicare premiums.

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